Sendie Offire of the genetary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 26 FEB -5 P3:51 SENATE RECEIVED BY: S. No. 1785 Introduced by Senator Christopher Lawrence "Bong" T. Go AN ACT EXPANDING THE PURPOSES AND APPLICATION OF THE SPECIAL EDUCATION FUND, AMENDING FOR THE PURPOSE SECTION 272 OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991, AND FOR OTHER PURPOSES EXPLANATORY NOTE The Special Education Fund (SEF) comes from the additional one percent (1%) tax on real property and is allotted to the local school boards. It serves as a vital source of supplementary funding for schools, particularly those in need of financial support to sustain their operations and educational programs. Under the Local Government Code, the SEF is intended for the operation and maintenance of public schools, construction and repair of school buildings and facilities, educational research, purchase of books and periodicals, and sports development. However, the law narrowly defines the scope of SEF utilization, thereby limiting its potential to address emerging educational needs. Local government units have long expressed that the prescribed uses of the SEF are too restrictive. Recognizing this, the Department of Education (DepEd), Department of the Interior and Local Government (DILG), and Department of Budget and Management (DBM) issued Joint Circular No. 2, s. 2020, which expanded the allowable expenditures of the SEF. Under the circular, "SEF can now shoulder the payments of expenses from the production of the self-learning modules, textbooks, activity sheets, and study guides or manuals approved and quality-assured by the
DepEd. Purchase of external storage devices such as flash drives, hard drives, and communication expenses can also be subsidized by the said fund."] The COVID-19 pandemic underscored the urgent need to adapt and modernize our education system. Yet, the restrictive provisions of the current law hinder the SEF from being fully maximized to meet these challenges. Many essential initiatives that could have been supported through the SEF remain unfunded, leaving schools struggling to provide adequate learning environments. As of May 2025, the Department of Education (DepEd) reported a nationwide classroom shortage of around 165,000 classrooms, highlighting the urgency of utilizing all available education funds more efficiently to address these critical gaps in infrastructure and learning resources. This bill seeks to institutionalize the expanded application of the Special Education Fund to include other critical education-related expenses such as the construction and repair of libraries, and the payment of salaries, allowances, and other benefits for teaching and non-teaching personnel. By doing so, this measure aims to strengthen the capacity of local governments and schools to deliver accessible, quality education to every Filipino learner. It is hoped that with the expanded scope and application, the SEF may help address the problems hounding our public education system. In view of the foregoing, approval of this bill is earnestly sought. SENATOR CHRISTOPHER LAWRENCE "BONG" T. GO 1 https://www.deped.gov.ph/2020/12/03/deped-to-maximize-use-of-sef-in-aid-for-distance-learning/
Sellait •Office of the ferretary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session FEB -5 P3:51 SENATE RECEIVED BY: S. No. _ 1785 Introduced by Senator Christopher Lawrence "Bong" T. Go AN ACT EXPANDING THE PURPOSES AND APPLICATION OF THE SPECIAL EDUCATION FUND, AMENDING FOR THE PURPOSE SECTION 272 OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991, AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
Section 1. Section 272 of Republic Act No. 7160 is hereby amended to read as
2 follows: "Section 272. Application of Proceeds of the Additional One Percent SEF Tax. - 4 The proceeds from the additional one percent (1%) tax on real property accruing to 5 the Special Education Fund (SEF) shall be automatically released to the local school 6 boards: Provided, That, in case of provinces, the proceeds shall be divided equally 7 between the provincial and municipal school boards: Provided, however, That the proceeds shall be allocated for the operation and maintenance of public schools, 9 construction and repair of school buildings AND LIBRARIES, facilities and equipment, 10 PAYMENT OF SALARIES, ALLOWANCES AND OTHER BENEFITS OF TEACHING AND 11 NON-TEACHING PERSONNEL, COMPETENCY TRAININGS FOR TEACHING 12 PERSONNEL, OPERATION OF ALTERNATIVE LEARNING SYSTEM (ALS) INCLUDING 13 PAYMENT OF SALARIES, ALLOWANCES AND OTHER BENEFITS OF ALS 14 FACILITATORS, educational research, purchase of books and periodicals, TEACHING 15 AIDS, OTHER INSTRUCTIONAL MATERIALS, fand] sports development, AND ALL 16 OTHER EXPENDITURES RELATIVE TO THE PROMOTION OF ACCESSIBLE PUBLIC
1 EDUCATION as determined and approved by the Local School Board."
Sec. 2. Implementing Rules and Regulations. - Within thirty (30) days from the
4 approval of this Act, the Department of Interior and Local Government and the 5 Department of Education shall jointly promulgate the necessary rules and regulations for the proper implementation of this Act.
Sec. 3. Repealing Clause. - All laws, ordinances, rules, regulations, other
issuances or parts thereof, which are inconsistent with this Act, are hereby repealed 10 or modified accordingly.
Sec. 4. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation. Approved,